three years now that sort of behavior that you saw there for any new yorker that's you encountered that whatever our campaign is working or do capitalizing the banks there's their bonuses are being slashed or pays being slashed they're being penalized they're being to capitalized they're sinking into the muck which is great we got a front row give you an london collapsing the city of london our campaign is working this all by so repressed j.p. morgan is working as the silver is being taken up physical market these banks of how to cover their balance sheets in other ways which result in firing bankers that's the goal get rid of them. so let's move on to some more foul mouth this time not foreigners but domestic workers i totally believed with the palo market today damning emails of barclays traders boasting about how they rigged energy prices to make profits so this is an american maxim barclays traders there are also rigging market and a foul mouth way for traders are accused of conspiring to sell electricity at

a loss to drive prices down this would enable simultaneous bets on falling energy prices to reap huge profits leading to losses of eighty six million pounds for all their investors and pension funds manipulating prices down energy prices people you know the un educated scrope knuckleheads out here will say oh that's great my you know bills are going to be less but you know manipulating prices down the reason it's preferred over manipulating prices to go higher is because you can use the counterfeiting technique of selling naked short celtic cetera and of course just basing the currency which has the effect of alternately driving up prices so the u.k. consumer now is facing higher energy and food costs in the medium to longer term because the bank stores are flooding the market with counterfeit securities and counterfeit pounds so this is not adding to their medium term benefit whatsoever but it sounds superficially like they are benefiting and of course that's the

propaganda from banks or is that we're helping you by totally destroying the system we need to burn the city down to help you know that it's absurd so let's look at this this practice of forcing prices down in order to gain because this is what barclays did with libel or and then they were forgiven across the world even in chat shows with bill maher and jay leno they were like bragging they were making fun of the fact that oh gee what kind of manipulation is that that we benefit like nobody's benefiting from this right because on the other side capital is being extracted from the system. by their big bets on the price dropping but also it's misallocating capital on the other side because when electricity producers are being given false price signals what does that do in a capitalist system x. oh it draws distortions and all kinds of mayhem but the forcing the price down in this way and forcing interest rates down forces companies to heads the resulting inflation by buying commodities like energy and agricultural commodities which of

course have the result of causing social unrest in revolution so you my. understand this in the following context the bankers are fostering revolution and it's happening around the world and global insurrection against banker occupation is taking hold in greece and ireland and countries around europe around the world so they are being hoisted by their own petard they are causing the revolution they're being fired wholesale they're being thrown into the street because they can't see you know the forest for the trees or simply burning down the village to save the village in a and that's exactly what's happening and this is moral hazard in action because the u.s. department of justice refuses to prosecute hard core criminal banks as they refused to so over and over we see this total hubris that these guys can openly they openly laid out exactly how they were wreaking markets but filled it with all sorts

of expletives how they were you know these actually these these traders who were also previously at enron i remember enron famously those audiotapes emerged where they were bragging about ripping off granny but in an expletive filled way you know they have a banker tourette's syndrome where everything is a freak and this and frick and that they kill people so it's no secret that they're in the business of homicidal banking and that their goal is to wipe out the entire population so that they have more to share with themselves but they don't understand that they're basically shooting themselves in the head that's committing financial suicide is financial ira carry financial kamikaze and we saw that famously nine eleven. the email sent by barclays american traders have echoes of the brash messages sent by their counterparts in london who boasted about rigging key interest rates that was lie bore and again you know here they act surprise that they sound the same as those emails they sent in in the library case or it sounds

the same as those audio messages left ten years ago by enron it sounds the same as those foul mouth you know crazy guy in singapore he sounds the same as the expletive laden e-mails going around at goldman sachs or the london whale or all these other things so why do they always actually opt in why is it always a bad apple with the same shocking behavior that the other banks were doing because there's no deterrent for committing criminal behavior and mass financial genocide there's no to turn to is no crime and what we have here is a system that mimics the worldwide wrestling federation so that these bankers who are like hulk hogan or the old jesse ventura come out there on the financial stage and body slam these markets and they destroy these markets but they get applauded by the audience the fish the sheep in it's up there behind me or struggling on a day to day basis needlessly because their banking overlords are sticking

a knife in their back and twisting it and corporations like the b.b.c. are meyer in scandals due to their own weird sense of priorities and they refused to go after the banks there's so barclays faces a two hundred seventy million pound fine by the us federal energy regulatory commission again this is close to five hundred million dollars it is interesting part of the d. capitalization of london going on is these huge fines that keep on being opposed upon just conveniently british banks whether it's standard chartered h.s.b.c. barclays you know noticed that goldman sachs and all these other banks don't face as many well there's definitely a power move from wall street to find all these british banks as a way to. downsized the british banking establishment for new york wants to take that business of course but when you give a bank like barclays a four hundred billion million to zillion dollar fine pound fine all they do is they increase they ratchet up their fraud to pay for the fine so you're encouraging

to commit fraud because you're not but there was some penalty you what you're saying is commit more fraud because that's the g.d.p. of britain is bank fraud we're going to find him for not committing fraud fast enough so you have to commit fraud faster to increase the g.d.p. of those countries are going to pose a fine on you barclays so that their commit fraud more rapidly so that the g.d.p. of the country goes up to bail out george osborne this quarter so we have more bankers in the news and this is a female banker in spain the bank banker who didn't understand anything a former director of the banking giant who's implosion for spain to seek a hundred billion euro bank bailout has admitted she doesn't know anything about finance. her name max is mercedes rowe who is scared oh who is paid three hundred seventy four thousand euros by bank and twenty eleven and she said in testimony before criminal court in madrid that she had qualifications in chemistry

nothing she didn't know anything about banking so don't sue her for the she's being honest and she's representative of the industry if you gave a simple task to bankers in the city of london or around the world for example asking a simple question like what's the relationship between bond prices of interest rates ninety five percent of those in the industry would not be able to answer that question and ask them what a short sell is ninety five percent is you have no idea how to answer that question asked want to make it short sale is up and ninety nine point nine nine nine nine percent of the industry have no idea what that means i mean is this the only industry in the world that rewards you know stupid fixation and the stupid or you are the higher up you were you were raised in the organization because then the culpability factor is shifted from the organization of the bank to society along. in the form of higher taxes more austerity measures because we have to all we can't fire any of these are stupid bankers because then it would be in violation of a scheme that protects those with infirmities so finally there's

a new campaign that was launched in america this past week and that is the people's bailout occupy wall street is launching the rolling jubilee and it is going to start buying distressed debt medical bills student loans etc in order to forgive it as a test run we spent five hundred dollars which bought us fourteen thousand dollars of distressed debt we then erased that debt so that's a return on investment of thirty to one max you created karma bank which was a way to combine short sales and boycotts to drive the price of the stock price down of a company that activists felt were doing wrong what do you think of this is financial activities reverse vulture capitalism so it's it's a fine thing for capitalism but capitalism fighting fire with fire it's a brilliant idea leno was trying to support of as much as possible it's a call to campaign this is the rolling jubilee rolling jubilee rowing jubilee fantastic get behind it maybe do some crowdfunding to raise money to retire more of

the debt using reverse bolter capitalism right susie member thanks so much for being on the kaiser report thank you max stay tuned for the second half of me talking exclusively to tara buell about her investigation into fraud at sun trust bank. brazas sisters. miss it's in. day care my daddy. a lot of deeds does

a famous reuse dance and play was oh my save. my mammy ransom business. resistance is not our politics but our culture. is couldn't. let so. cultures of resistance on our team.

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or let's. buy a max kaiser welcome back to the kaiser report time now to go to new york and speak with investigative journalist terry buell you can find all of the smash mouth investigative journalism of cherry bowl at very buel dot com terrible welcome back to the kaiser report imax is great to see you all right terry you are out with a new investigative piece called regulators investigate sun trust bank for fraud

tell us about sun trust the agency short cut mortgage and how this fraud operated sure max you know that this is. that i've been watching for over a year now and i think it's almost as big as the library scan that you've been talking about for quite a while now centrist bank is a midsize american bank used to compete with countrywide and wells fargo and whistleblowers have come forward now and submitted a claim to the bank's regulators and said for at least two years from two thousand and six to the beginning of two thousand and eight they were literally cheating and manipulating a direct lending system into fee enemy the enemy is a government sponsored bank and buys wholesale mortgages from banks right the one that was spelled out for hundreds of billions of dollars. so the f.c.c. is currently sitting on information that billions and billions of loans were sold to fannie mae as prime is really you know good loans but they were really all tail

loans and now these billions and billions of loans have been defaulting prime is really you know good loans they're not the only ones doing it countrywide was also sued by the department of justice just two weeks ago and i believe wells fargo is going to be next so besides the fact that these banks cheated was a little scary and what the f.c.c. is looking at is how long did the did the fannie mae know that the banks were cheating them so terry to go into some details as to the fraud itself these are these are going to end up being put back that will cost the banks some money any idea what the size of the scam was in dollar terms and what the potential liability could be for the bank so right now sun trust admitted in their last third quarter filings that at least six billion loans have been requested to be bought back and since most of their business is done with the anyway fannie mae we can assume most of that went to them. they've only paid back actually one point four billion ok so

total loans the they did with fannie mae over this time period were hundreds of billions if the you know susan settles we have no idea how large the impact could actually be but it would be hefty. you know what the traders were doing and said they would reenter income and assets into the computer system the fed directly into fannie mae and they set it up assuming that the bank had already approved that these loans were good that they were prime so we don't need like human beings in the process to check any documents and to see if any of the income in the assets are actually true ok so that they would sit there and say they figure out if someone has a good credit score right they would enter that someone like a hairdresser was making one hundred thousand dollars. year and if that wasn't enough and they would just reenter the hairdresser was making one hundred twenty five thousand dollars a year and they were allowed to do this multiple times like up to fifteen times so

terry you're talking about another bank scandal it involves fannie mae and freddie mac. fannie mae and freddie mac. we know now were managed by folks that were involved in serial fraud we know that the government to take the liabilities of these it's two cents on their own balance sheet adding five trillion dollars worth of debt to the federal debt i can only assume if the story continues as we've seen these stories progress so far that the bank will be given some kind of civil penalty which will be about ten percent of the amount of the fraud which was just is a signal to them from barack obama and the justice department to please committing bank fraud because we love the way you break the law. you're very close actually i bet they pay media like two percent like a two percent fee on the dollar and then the s. and when they settle with the f.c.c. right unless there's a criminal case they're not emitting any wrongdoing so how culpable is the f.c.c.

in the d.o.j. and why i mean this is the most inquest important question why is fannie mae not in trouble for the same thing i mean they allowed it to happen they realized that the f.c.c. did actually sue individually daniel mudd he was a former c.e.o. of fannie mae and that that lawsuit is going forward in court the f.c.c. beat the motion to dismiss to dismiss the meaning there's a little bit of hope there but there should be much larger penalties for all of those g.s.c. executives who allowed this to happen because who's paying for it max the american taxpayer pair so what so now we're paying the f.c.c. to like not do their job basically well yes the sea famously is caught surfing the internet for porn all day so we're subsidizing a bunch of bureaucrats to whack off to porn while the banking system implodes due to massive fraud now imagine suntrust by a bank i. merely thoughts of my days on wall street in one nine hundred eighty s. because i used to work with clients of executives at sun trust when they were embroiled in massive banking fraud and scandals back in the eighty's so this is

a story bank that. you know seems of break will break the law you know going to the bathroom we can't seem not to break the law the famous of course for their relationship to coca-cola their coca-cola bank they took coca-cola in one nine hundred nineteen they just sold off their coca-cola shares last year presumably to pay for more cia investigative criminal activity that they sponsor a concern for us now survive without the coca-cola stock and without the funneling it's fraud to the taxpayer so they've gotten rid of that is a good question yeah they got rid of their so. they did that last quarter max to help make their earnings look better ok so they don't have any more coca-cola stock to sell right they just added on another four hundred million of they can put back requests from the seas right so. what are they going to do here's something interesting i was looking into some old stories in two thousand and six yes she she

actually cleared them of an investigation this is the exact time that they were committing this fraud against the g.s. . it's absolutely unbelievable here's something else they went out publicly and said we think these are the last put back requests we're ever going to get from the seas because all of a sudden we finally actually reviewed the loan files it's a joke i don't believe i don't think the truth i don't think that they've disclosed this as you seem best a geisha to their investors yet i think that's a huge problem and this is a bank who's actually unlike unlike wells fargo who's had to pay some fines right unlike countrywide and bank of america who have had to pay a lot of fines they haven't had to pay any fines yet why is that well i guess the difference is that the obama administration believes in illegitimate financial rape . and then the g.o.p. would believe. in legitimate financial rape that seems to me the only difference between the two parties these days that j.p.

morgan and other financial terrorists they're back in the news there isn't related to the story that you first broke right here on the kaiser report two years ago serve you all. ok so this morning j.p. morgan finally filed a document with the c.c. and said hello shareholders we're admitting that all that stuff that tom ariano who was at bear stearns the head of the mortgage traders all that money that they live or they stole from their own clients right. that that was kind of illegal so we're not going to many wrong but we we are going to settle with the f.c.c. now this is the first time j.p. morgan is really coming out and absolutely saying yes the f.c.c. has been investigating us you and i reported this the day my first story broke at the. january twenty fifth two thousand and eleven you put on your website that the f.c.c. would investigate this and they are what's really interesting here is how the settlements

going to work right i mean is probably only going to be for a few hundred million dollars and considering the new york. sued them for twenty two billion dollars that it's just a joke i mean this is. if if they put this money if the f.c.c. there's some sarbanes oxley you know act actually set up something called the fair fund so the the f.c.c. has a mechanism to take this money that they get from j.p. morgan ok and put it into the fair fund which would direct it back to the mortgage backed security trust and then it can be doled out to investors now if they just put it into the general fund i mean that's just like i don't like all the model lines who did all the discovery work and found all the with this fraud that's like they're just taking money from them it's ridiculous and if they put it back into the trust since j.p. morgan is not going to be admitting fraud right that would at least be. some sort of a signal to the market and hopefully to some of the federal judge's ruling on this case that yeah j.p. morgan did something wrong and you know it's even sad saturday i guess the wall

street journal has some editorial opinion piece that j.p. morgan and the victim here because they were forced to buy bear stearns i don't believe that you know i don't believe that because it's a simple max j.p. morgan was bear stearns clearing agent that means they saw all the toxic mortgage backed securities going through the system and being sold and bought way before they bought them they knew they were buying crap no no no question about it you know jamie diamond plays the victim card and you know the fact is that when they went through the two thousand and eight period and they were caught stealing relating markets rigging markets engaged in massive fraud you know the government turned around and said wait a minute we're going to stop you from rearranging your balance sheet for the time being while we try to sort this out here we are four or five years later all the crimes of j.p. morgan are continuing apace uninterrupted more massive than ever before to get the government says you know what we're going to let you buy back your stock again jamie diamond recapitalize the stock the stock's up a buck and

a half is about the problems on wall street in america if you're a genocidal maniac that's a buy if you're into some kind of capitalism and democracy it's a sell sell short so how can they this. wall street to continue i mean barack obama's back in office is it going to wall street now spread jamie's jigs and get no big wet kiss again or is going to impose some kind of law and order finally what's going on sorry bill you know when that country is going to be any law and order at all max today i'm wearing black for the death of the american investor and any chance to have fair play in the investing market because i do not think that obama can do anything i do not think the d.o.j. are the f.c.c. wants to do anything i mean the f.c.c. took five years to get this settlement they didn't do any digging why did they take so long. well i mean i think we have you know i wouldn't but i would go along chapstick the amount of chapstick that barack obama uses to keep his lips more oist

from kissing wall street's ass would drive the price of your dog higher this guy's a shameless financial terrorist the better and it's just described and i can't believe that people are not surrounding wall street or the white house and demanding that come out their hands up this is a this is atrocious they're going to be any relief at all we're in a million man march on the f.c.c. we need a million man march on the f.c.c. on the new york fed right to timothy geithner's old house right to sit outside and camp outside until someone is charged criminally because let me tell you this case this is the case that is a slam dunk to charge tom or jeff first wiser and mike nierenberg for criminal fraud and i really don't think it's going to happen anymore and it makes me want to throw up all right so terry finally tim geithner terrorist that the treasury is leaving who's to going to take his place jamie diamond. you know right now why not

because obama is going to put any friend in there right who will do what he tells them what to do all right that's all it's on we have thanks so much for being once again on the kaiser report thanks for having me max it's great to see you all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert or thank my guest terry bill you can find her at. home until next time thanks guys or say oh and don't forget to sign my name mail at kaiser recorded r t t v are you. by all.

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